FCC FINALLY approves xm/sirius merger

[hemiram]

According to Bloomberg the FCC is approving the merger of xm/sirius with conditions.

Sirius Satellite Radio Inc.'s purchase of XM Satellite Radio Holdings Inc. has won the approval of a majority of Federal Communications Commission members, the Wall Street Journal reported.

Republican Commissioner Deborah Taylor Tate will cast the deciding vote in exchange for an agreement that settles enforcement issues involving the companies and a $20 million fine, the Journal said on its Web site, citing an FCC official close to the deal. A 2-2 deadlock on the panel left the fate of the $3.5 billion deal in her hands.

The FCC is the last regulatory obstacle to the all-stock combination. Two Republican commissioners, Chairman Kevin Martin and Robert McDowell, have already backed the merger. Democrat Jonathan Adelstein, who voted against it today, said in an e- mailed statement the combination would create ``a monopoly with window dressing.'' Fellow Democrat Michael Copps also voted no.

"Commissioner Adelstein would only cast a dissenting vote once it was fairly clear that Commissioner Tate would support the deal,'' Paul Gallant, a former FCC official and Washington- based analyst with Stanford Washington Research Group, said in an interview. He continues to predict approval.

Commissioners, who face no deadline for a decision, vote electronically at the time of their choosing.

Traditional radio companies led by the National Association of Broadcasters oppose the merger, saying it will create a harmful monopoly. Sirius and XM, the only two pay-radio companies, told regulators their union would bring consumers more programming at a lower cost.

The companies agreed to freeze prices for three years, to sell channels in smaller packages and to allocate 8 percent of their channels for use by educational and minority broadcasters.

Antitrust authorities at the U.S. Justice Department cleared the deal in March, saying competition from music sources including MP3 players and traditional radio would keep the combined company from raising prices.

Sirius, based in New York, gained 8 cents, or 3.4 percent, to $2.46 at 3:04 p.m. New York time in Nasdaq Stock Market trading and had declined 21 percent this year before today. XM, based in Washington, rose 80 cents, or 8.9 percent, to $9.62 and was down 26 percent.

Sirius is offering 4.6 of its shares for each of XM's. The companies first proposed the combination in February 2007.

Adelstein had sought a six-year price freeze, and for the companies to allocate 25 percent of their spectrum for educational and minority broadcasters. He also wanted requirements that the radios be capable of tuning into both services as well as terrestrial broadcasters' digital channels.

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Wonder what that means for all of us that have sirius in our vehicles.

[06Hemiman]

I hope this doesn't mean prices go up.  I bought a radio for my house (I don't get good reception out where I live) because I love the sirius in my truck.  I didn't really want the option but the dealer took the cost of the option off the price of the truck so I didn't really bother me much.  I love the comedy channels and some of the older rock stations.  Nothing beats my sirius for entertainment out in the field.

[markedman]

I've never thought about either company.  None of my vehicles have either service.  I guess I never really though it was a good idea to pay for something that you can get for free.  Now that there's no competition in that marketplace I'd expect a rise in commercials guys, the good old days are gone.

[gman]

I've been reading that it's still not approved, it's down to one last vote though.  And the person is expected to vote in favor of it.  That doesn't make it final though.

[raman noodles]

It went through on monday this week.  I hope this doesn't screw my xm channels.  Sirius doesn't have very deep playlists.

[hemibob]

As long as this means I can get all the sports on one radio I'm a happy guy

[diesel game]

As long as this means I can get all the sports on one radio I'm a happy guy

x2, having to buy a sub to each radio was ridiculous.  Now I can get my football and my baseball on each.  I don't even know why the major sports would allow for an exclusive contract with the radio, they're locking out customers by doing so.

[gman]

While I think it's great that they were allowed to merge and now we can get all the sports on one radio (I wouldn't know what is what since I don't have sat radio) how did this get passed?  I thought having one company constituted a monopoly.  I'm not saying I care either way, it doesn't effect many people and it's certainly not a necessity, just curious.